Investigations
Arbor Realty Trust, Inc.
Overview
Overview
- Deadline:
- Sep 30, 2024
| Company Name: | Company Name: Arbor Realty Trust, Inc. |
| Stock Symbol: | Stock Symbol: ABR |
Arbor Realty Trust, Inc. (NYSE: ABR): Arbor Realty Trust, Inc. (“ABR” or the “Company”) has been sued for violations of the federal securities laws. The complaint asserts claims against the Company and certain of its senior executives under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in ABR securities between May 7, 2021 and July 11, 2024, inclusive. The case is pending in the U.S. District Court for the Eastern District of New York and is captioned Lois Martin v. Arbor Realty Trust, Inc., et al., No. 24-cv-05347.
If you incurred losses on your investments in ABR, you are encouraged to submit your information.
Why was ABR Sued for Securities Fraud?
ABR is a nationwide real estate investment trust (“REIT”) and direct lender, providing loan origination and servicing for commercial real estate assets. ABR operates through two business segments: Its Structured Loan Origination and Investment Business, or “Structured Business,” and its Agency Loan Origination and Servicing Business, or “Agency Business.” The complaint alleges that during the relevant period, ABR misrepresented the health of the Company’s loan book.
As alleged, these statements were materially false and misleading. In truth, ABR used fake holding companies to help conceal that its loan book was distressed, and the underlying collateral was overstated.
The Stock Declines as the Truth is Revealed
On March 14, 2023, NINGI Research published a report which claimed, among other things, that “Arbor has been hiding a toxic real estate portfolio of mobile homes with a complex web of real and fake holding companies for more than a decade.” This news caused the price of ABR stock to decline by $0.87 per share, or almost 7%, to close at $12.12 per share on March 14, 2023.
Then, on December 5, 2023, Viceroy Research published an in-depth study of ABR’s Jacksonville, Florida properties. Viceroy found that the Company’s entire loan book is distressed and the underlying collateral is vastly overstated. This news caused the price of ABR stock to decline by $0.19 per share, or over 1%, to close at $13.67 per share on December 5, 2023.
Finally, on July 12, 2024, Bloomberg reported that ABR was “being probed by federal prosecutors and the Federal Bureau of Investigation in New York.” According to the news report, “[t]he investigators are inquiring about lending practices and the company’s claims about the performance of their loan book.” This news caused the price of ABR stock to decline by $2.64 per share, or almost 17%, to close at $12.89 per share on July 12, 2024.
What are my Rights?
If you purchased or otherwise acquired ABR securities between May 7, 2021 and July 11, 2024, inclusive, you may ask the Court no later than September 30, 2024, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in ABR, you are encouraged to submit your information.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
If you incurred losses on your investments in ABR, you are encouraged to submit your information.
Why was ABR Sued for Securities Fraud?
ABR is a nationwide real estate investment trust (“REIT”) and direct lender, providing loan origination and servicing for commercial real estate assets. ABR operates through two business segments: Its Structured Loan Origination and Investment Business, or “Structured Business,” and its Agency Loan Origination and Servicing Business, or “Agency Business.” The complaint alleges that during the relevant period, ABR misrepresented the health of the Company’s loan book.
As alleged, these statements were materially false and misleading. In truth, ABR used fake holding companies to help conceal that its loan book was distressed, and the underlying collateral was overstated.
The Stock Declines as the Truth is Revealed
On March 14, 2023, NINGI Research published a report which claimed, among other things, that “Arbor has been hiding a toxic real estate portfolio of mobile homes with a complex web of real and fake holding companies for more than a decade.” This news caused the price of ABR stock to decline by $0.87 per share, or almost 7%, to close at $12.12 per share on March 14, 2023.
Then, on December 5, 2023, Viceroy Research published an in-depth study of ABR’s Jacksonville, Florida properties. Viceroy found that the Company’s entire loan book is distressed and the underlying collateral is vastly overstated. This news caused the price of ABR stock to decline by $0.19 per share, or over 1%, to close at $13.67 per share on December 5, 2023.
Finally, on July 12, 2024, Bloomberg reported that ABR was “being probed by federal prosecutors and the Federal Bureau of Investigation in New York.” According to the news report, “[t]he investigators are inquiring about lending practices and the company’s claims about the performance of their loan book.” This news caused the price of ABR stock to decline by $2.64 per share, or almost 17%, to close at $12.89 per share on July 12, 2024.
What are my Rights?
If you purchased or otherwise acquired ABR securities between May 7, 2021 and July 11, 2024, inclusive, you may ask the Court no later than September 30, 2024, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in ABR, you are encouraged to submit your information.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.